If a $500 tax is placed legally (statutorily) on the sellers of new violins and as a result the price of violins to consumers rises by $400, then the actual burden of the tax
a. falls completely on violin buyers.
b. falls completely on violin sellers.
c. is $400 on violin buyers and $100 on sellers.
d. is $100 on violin buyers and $400 on sellers.
C
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Suppose the price of leather used to produce shoes increases. The higher price of leather ________ the supply of shoes, and the supply curve of shoes ________
A) does not change; does not shift B) decreases; shifts rightward C) increases; shifts rightward D) increases; shifts leftward E) decreases; shifts leftward
Which amount is not included in gross domestic product?
A) Payments to a physician for treatment of a respiratory condition caused by air pollution B) The purchase price of a used car bought from a friend C) Wages of government employees D) Wages of people who clean up toxic chemical spills E) Wages of people who sell used cars
The difference between the simple Keynesian model and the IS-LM curve model is that the latter
a. excludes a money market and interest rates. b. includes a commodity market and flexible income. c. excludes a commodity market and interest rates. d. includes a money market and flexible interest rates.Figure 7-3
When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis, a rise in labor ________________________, and a rise in the technology coefficient __________________
A) shifts the production function upward; also shifts the production function upward B) moves us up along a given production function; shifts the production function upward C) shifts the production function downward; shifts the production function upward D) shifts the production function upward; moves us up along a given production function